Commission on Growth and Development completed its activities in June 2010. The Commission's achievements during  2006-2010 can be viewed here.This blog is archived and no longer open for comments. If you have any questions, please contact contactinfo[at]growthcommission.org

 

Welcome to the Growth Blog

The Growth Blog is a forum for you - the policy maker, the academic, the student, and the interested citizen of the world - to agree, disagree, or simply to engage current practitioners on policies and issues critical to development. This platform was inspired by the series of meetings that the Commission on Growth and Development held around the world over the course of the last two years. Of the many lessons that emerged in the deliberations, the one that stands out is that inclusive growth requires inclusive thinking, and inclusive discussion.

 

Michael Spence Comments on Financial Crisis and Suggests Next Steps, Financial Times

Submitted by Administrator on Fri, 11/28/2008 - 13:21.

In an op-ed in the Financial Times’ Economists Forum on November 24th, Growth Commission Chair Michael Spence elaborates on the endogenous nature of the asset pricing problem, and its role in the current global financial crisis. The piece, entitled Balance sheets and income statements: breaking the downward spiral , highlights the uncertainty investors face in determining the intrinsic value of assets, and their consequent reluctance to enter the market.  Dr. Spence discusses the channels underpinning the decline in economic activity, and suggests that government can play a positive role in limiting the negative overshoot in assets and economic activity.  Additionally, he points to the need for a significant stimulus package and a more systematic program of purchasing assets to stem the downward spiral.